Chinese shipbuilders increasing output

It is reported that shipbuilders in Dalian, Tianjin and Bohai Bay regions have substantially increased their production capacity with the aim of raising production from 9 million tonnes to 11 million tonnes. Recently shipbuilders in Japan and the US announced plans either to downsize or to quit the business. Industry experts suggest there is a possibility that the shipbuilding industry is likely to see a number of companies withdrawing from the industry in the next couple of years as a result of corporate bankruptcies, restructuring, sales, mergers and acquisitions. It is noteworthy that, although China’s shipbuilding industry currently is in a healthy position, there are a number of problems lurking beneath the surface with overcapacity probably the main one.
Clarksons, the UK shipping analyst, recently reported that China completed 8 million tonnes in the first half of 2010 followed by South Korea with 7.5 million tonnes. This is the first time China has ranked number one in the world in terms of production in the first half year.
Analysis of the report of China Shipbuilding Industry Association also pointed out that, during the first half of this year, domestic shipyards received new shipbuilding orders amounting to almost 400 million dwt of which 6.86 million dwt was achieved in the month of May. This amount surpassed the average monthly level before the outbreak of the financial crisis in 2008.
Some shipyards such as Rongsheng Heavy Industries Group have already taken orders for 2013 delivery.